…launch business council to activate regional integration
Moroke Sekoboto
THE Private Sector Foundation of Lesotho (PSFL) and the Black Business Council (BBC) have established the Lesotho–South Africa Business Council (LesSABC), forging a new era of regional partnership that moves “from vision to action” by championing cross-border economic empowerment.
During the launch of the council this week at Avani Lesotho, panellists discussed two key topics: transforming borders into engines of economic growth, and identifying key corridor projects to catalyse development.
The discussions focused on financing these corridors, banking regulations, and enabling efficient cross-border capital flows to support trade and investment.
Lesotho National Development Corporation (LNDC) Chief Executive Officer, Thabo Khasipe, said Lesotho’s landlocked status continues to weaken it compared to countries such as eSwatini, which borders both South Africa and Mozambique and thus faces fewer developmental constraints.
Mr Khasipe said many analysts had said it was “almost impossible for a small landlocked country to develop”.
“The odds are so much against us: you lack access to international value chains and you cannot leverage the export markets. But being small means you don’t have economies of scale to build an economy that can be self-sufficient. We have the Trans-Maluti corridor, a highway that would be a silver bullet in unlocking Lesotho’s industrial development,” Mr Khasipe said.
He explained that the highway will not only connect Lesotho to the port of Durban, “the most important port for the Southern African Development Community (SADC) sub-region”, but also serve as a strategic route for goods destined as far as Zambia and the Democratic Republic of Congo (DRC), which currently pass through Durban.
“In some way it becomes a risk as it makes the whole region not very resilient, but that is a reality as we speak. Trans-Maluti is a highway that would connect Durban, central South Africa, Bloemfontein, through Lesotho, cutting through the Maluti Mountains. Indications and analysis show that this highway would shave about two hours of travel time, about 200 km, as Durban is in the east. But from here in Maseru to Durban, we head to the north, losing 270 km going in the wrong direction,” Mr Khasipe said.
Speaking at the same event, BBC Vice President, Gregory Mofokeng, said both countries can streamline systems and build a more competitive regional corridor.
“The reason we are launching this council is because the corridors are there. The issue is how do we implement? We have to feature these corridors in our infrastructure projects because once they are there, we will look for their funding and lobby our governments to contribute. We have to get these projects going because they are going to benefit both our countries. So, it is in our interest to ensure their implementation and that businesses of both countries benefit,” Mr Mofokeng said.
Another panellist, Dr Sindiswa Mzamo, Global President of the Circle of Global Business Women, said borders should not be walls but gateways to shared prosperity. She said key corridor projects can activate industries, logistics, and regional integration.
She stressed that borders can become hubs of innovation and revenue generation if managed strategically.
“This landmark initiative is dedicated to unlocking new trade and investment opportunities, fostering cross-border collaboration, and driving economic growth for their members. We must view borders as engines of growth rather than barriers. We need to facilitate the creation of a cross-border economic zone linking Lesotho and South Africa,” Dr Mzamo said.
“Launching the Lesotho–South Africa Business Council, we are forging a new era of regional partnership from vision to action through mandate in championing cross-border economic empowerment,” she added.
Deliberating on access to financing for Small, Micro and Medium Enterprises (SMMEs), PSFL Chief Executive Officer, Thabo Qhesi, said the council creates a formal platform for the private sector to collaborate, address cross-border barriers, enhance trade, promote investment, support SMMEs, and advocate for improved infrastructure and harmonised regulations.
Mr Qhesi noted that the two economies are closely linked through labour, trade, value chains, and shared development goals.
“We are in the Common Monetary Area (CMA) and the Loti is pegged to the Rand, showing how this initiative will strengthen economic partnership between the two countries. The initiative will confront long-standing challenges affecting cross-border trade, seamless transport in goods, capital, and services between the two countries,” Mr Qhesi said.
